Term life insurance — or any life insurance policy, for that matter — may be beneficial, especially for those who want to help protect their family after they're gone. If they're looking for coverage for a specific time period, such as 10 or 20 years, term life is a good option. It also may be more affordable than other types of life insurance.

Term life insurance pays a stated death benefit to beneficiaries if the insured individual passes during the coverage period. Unlike other forms of life insurance, term life insurance provides guaranteed level premium and guaranteed death benefit only during the level term period. If death does not occur before the end of the level term period, the policy owner may have the option to renew coverage, convert to permanent coverage, or allow the policy coverage to terminate.

If the insured were to pass during the coverage period, term life insurance pays the stated death benefit to the beneficiaries. Death benefit may range from $25,000 to $10+ million and may vary based on product and eligibility.

The amount of term life insurance needed depends on their current situation - including income, debt, and living expenses - and how much their loved ones will need should the unexpected occur.

There’s no one-size-fits-all policy. The best way for a client to determine the ideal term life insurance policy is to have an open, honest dialogue with an insurance agent. Agents have the experience to help make sure a family’s financial needs are protected. At Transamerica, we want to make it as easy as possible to find the life insurance policy that suits their specific needs.

The cost of term life insurance depends on several factors, including age, health history, and coverage amount. Term life insurance tends to be more affordable than permanent insurance, such as whole life and universal life.

Clients should purchase the policy that fits their individual needs. Term life insurance is a way to help protect a family in the event their loved one passes. The death benefit can help cover costs, such as college, a mortgage, or outstanding debts. Policyholders may have the option to convert the term policy into a permanent policy that may provide coverage for their entire life.

A term life policy from Transamerica provides guaranteed, level premiums during the term period — 10, 15, 20, 25, or 30 years. The term period policy should be based on their financial needs.

The policyholder may have the option to convert some or all of the coverage to a permanent life insurance policy without additional underwriting.

Any coverage not previously converted or canceled will continue as yearly renewable term until age 105. Premiums increase annually for yearly renewable term beginning in year 11 for the 10- year policy, in year 16 for the 15-year policy, in year 21 for the 20-year policy, in year 26 for the 25-year policy, and in year 31 for the 30-year policy. Check the policy data page for post-level term premium increases.

It's important that clients meet with their insurance agent to understand their insurance needs, options, costs, and eligibility. Clients may consider converting some or all of the coverage prior to the end their conversion period, terminating coverage, purchasing a new policy (subject to eligibility and underwriting), or continuing coverage as yearly renewable term. 

Insurable individuals may be eligible to purchase a new term policy (subject to eligibility and underwriting) at lower premiums than yearly renewable term premiums. Premiums increase annually for yearly renewable term beginning in year 11 for the 10- year policy, in year 16 for the 15-year policy, in year 21 for the 20-year policy, in year 26 for the 25-year policy, and in year 31 for the 30-year policy.

Policyholders can cancel their term life insurance policy at any time. Conversely, if customers do not pay the insurance premium when due, the policy may lapse and coverage terminated.

No, policyholders cannot borrow against a term life insurance policy.

Beneficiaries generally do not have to pay federal income taxes on death benefits received. Neither Transamerica nor its agents or representatives may provide tax or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors regarding their particular situation and the concepts presented herein.

Buying term life insurance is simple. Get an online quote in minutes, contact a Clarity Life Insurance representative directly at 888-669-0002, or call your insurance agent.